New York Supreme Court Grants Injunctive Relief to Investors in Money-Market Fund That "Broke the Buck"

December 16, 2008

On October 6, 2008, Kasowitz filed an action in New York Supreme Court seeking injunctive relief and damages against the Reserve International Liquidity Fund on behalf of investment company Caxton International and other investors. That fund was a supposedly ultra-safe money-market mutual fund that "broke the buck" -- i.e., went below a $1.00 per share net asset value -- after Lehman Brothers Holdings filed for bankruptcy on September 15. In a series of ongoing hearings in the commercial division, Justice Barbara R. Kapnick has issued orders granting Kasowitz's motions to bar improper redemptions from the fund; appoint an independent financial professional to oversee the fund and provide weekly updates to investors; and require the fund to produce critical discovery on an expedited basis. Kasowitz New York partner Mark P. Ressler and Associate Michael Hanin continue to represent Caxton International and other International Fund investors in this action.